The IRS recently issued a series of frequently asked questions addressing one of the exceptions to the 10% additional tax on early distributions from qualified retirement plans. Most retirement plan distributions are subject to income tax and may be subject to an additional 10% tax. Generally, the amounts a taxpayer withdraws from an IRA or retirement plan before reaching age 59½ are called early distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies. One of the exceptions applies to distributions that are part of a series of “substantially equal periodic payments.” To read the FAQs about this exception: https://bit.ly/3Aj5EU0 Call or visit our website for more information! www.mjscpa.com/
